Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinExtending last week's rise, gold gained 0.3% to close above $1,204 as rising oil, a falling dollar, and new trade tensions boosted demand for alternative assets.

The dollar fell against major rivals as euro rallied to a three-month high after ECB chief Mario Draghi said the central bank is likely to unwind monetary stimulus because of sharply higher inflation in the eurozone. Tighter ECB monetary policy is expected to pressure the dollar, which has benefited from relatively higher yields since the Fed began raising interest rates once per quarter in March 2017. A weaker dollar supports gold and other commodities by making them less expensive overseas.

Brent crude, the global oil benchmark, rose 2.3% to push above $80 per barrel for the first time in nearly four years. President Trump's decision to annul the Iranian nuclear pact and renew sanctions on Iranian oil has reduced its exports by half a million barrels per day, according to the IEA, buoying prices. Gold often trades in sympathy with oil as hedge against energy inflation.

The Dow and S&P 500 fell as another $200 billion in tariffs against China took effect today, along with retaliatory measures by China against US goods.

The other precious metals were mixed, with silver and platinum dipping slightly while palladium added 0.6%.

At the Comex close: December gold gained $3.10 to $1,204.40; December silver rose 2 cents to $14.34; October platinum inched down 30 cents to $829.30; and December palladium climbed $6.70 to $1,051.60 an ounce.